Following a record USD1.2 billion profit for the second quarter of the year, United Airlines (UA, Chicago O'Hare) has announced an additional USD3 billion share buyback program which it expects to complete by 2017.
"The USD3 billion share repurchase program we announced today demonstrates the confidence we have in our future," John Rainey, UAL's executive vice president and chief financial officer, said. "We will continue to invest in our customers, assets and our people, and remain committed to improving our balance sheet, expanding our margins and improving our return on invested capital, and expect our third quarter pre-tax margin to be between 13.5 and 15.5%, excluding special items."
The amount represents approximately 14% of the company's market capitalization as of the closing stock price on July 22, 2015.
United recently completed a USD1 billion share buy-back program launched last year in which it returned USD320 million to investors.
